360-Degree Crisis CommunicationsFor organizations in regulated industries

Nick LanyiRagan Consulting Groupnicklanyi@gmail.com

What is Crisis Communications?

Crisis management is about stakeholders.

A crisis threatens your organization’s existence, success or reputation.

Crisis Comms in Regulatory Environment

• Policymakers & regulators become a prime stakeholder set and audience

• Honest and timely disclosure

• Hippocratic Oath is in Effect

• Cooperation, Cooperation, Cooperation

The Plan

Risk AssessmentStakeholder AnalysisMessage DevelopmentApproval ProcessPlaybookPractice

Benefits of Crisis Planning

Risk Assessment

Types of Crises

• Operational• Production• Health & Safety

• Cybersecurity• HR• Financial• Legal• Political

• Social Media

Risk Assessment Process

• Peers, similar industries

• Start with existing risk framework

• Use the news

• Ask around

• Risk summit

• Add what you know

• PRIORITIZE

RiskAssessment

Scenarios

Risk Assessment & Scenarios - Example

RISKSOperationalGas leakGas explosionWorkplace accident

FinancialEarnings missAccounting irregularities

RegulatoryCarbon taxMethane

Gas explosion1. Minor, no injuries2. Major, injuries/death

Carbon taxPublic affairs is managingWon’t be a surprise

SCENARIOS

Stakeholder Analysis

Define stakeholders broadly – include regulatory stakeholders.

360 Approach

Community

Media

CustomersPolicymakers

Employees

“Know Your Audience”

• Who are your stakeholders?

• What motivates them?

• What questions will they have?

• Ask. Research. Put yourself in their shoes.

Public Affairs – Comms Summit

• Stakeholders

• Policymakers

• Political Climate

• Help Each Other Understand

• Help Each Other Succeed

For Each Scenario…

What government/regulatory stakeholders will need to be notified before you take an action – including communications?

Know Your Disclosure Rules

Legal should brief comms team on disclosure rules

Consider recommending a Disclosure Committee for certain scenarios

DISCUSSION

Message Development

Things Have Changed…2000 TODAY

Traditional news media trusted Traditional news media under attack

Alternative media marginal Alternative media central

Strong gatekeepers No gatekeepers

Fact-based journalism Opinion-based journalism

Content creation limited Content creation exploding

Authority Authenticity

AUTHENTICITY, not authorityENTERTAINMENT, not informationSHOW, not tellOPINION, not neutralityPEOPLE, not experts

What Today’s Media Consumer Wants

AESOP

Tell a Good Story

Message Development

For each scenarioDeliver your story to key stakeholders:• Background information• Talking points• Statements• Key messages, proof points,

examples• Q&As

Scenario-Specific Materials

• Prepare for early involvement of regulatory authorities

• For scenarios that will involve regulatory process, incorporate into plan

• Take care in prepping, sharing written materials

Approval Process

• Crisis time = hours & minutes, not weeks & days• Alert legal, public affairs to potential problems• Work out kinks before the crisis• Make your case now• Be realistic

Playbook

• No right or wrong format, but increasingly in shared doc form

• Must be:• Easy to understand• Accessible by crisis team• Updated every 6-12 months

Playbook Elements

For each scenario

• Crisis Management Team

• Crisis Communications Team

• Key stakeholders

• Strategic principles

• Background documents

• Message materialso talking pointso statements (external & internal)o social media (sample FB post, tweets, etc.)o Q&Aso other

• Spokespeople

Crisis Communications Team

• Traffic cop

• Rapid response/messaging lead

• Media relations lead

• Social media lead

• Recovery lead

• Public affairs/Regulatory liaison

• Leader

• Work with PA/RA to identify internal and third-party spokespeople

Spokespeople

• Media training

• Develop relationships with reporters

Stakeholder Outreach

Media Outreach

Executive Profile Development

EXERCISE

The Crisis

Keep the Focus on Stakeholders

• Leadership will be freaking out• Business, legal and regulatory imperatives paramount in C-

suite discussion• Assert the need for effective communications -- not to

placate the media but to shape narrative for stakeholders• Emphasize long-term impact on brand

Your liaison should work closely to coordinate communications with PA/RA:• Know what they’re saying & vice versa• Same message to all audiences• Be aware of constraints

Coordinate with PA/RA

Messaging: Day One

• Placeholder statement

➢ “We are aware of the incident at our Brentwood location. We will provide additional information as soon as possible.”

• If necessary, correct mistakes/rumors calmly & straightforwardly

• Provide information and show compassion

• Take responsibility as appropriate

• Remember the bigger story

Reactive

Once the record is corrected and your narrative has been established, shift the conversation to better ground:• Values• People• Stakeholders want to believe• Use Regulatory/Legal process to your advantage • Use opportunities to “close and pivot”

Proactive

What to Avoid

• Acting contrary to values

• Lying

• Silence

• Confusion

• Ignorance

• Mixed Messages

• Defensiveness

• Combativeness

United Airlines

United: First CEO Statement

“This is an upsetting event to all of us here at United. I apologize for having to re-accommodate these customers.”

United: CEO to Employees (leaked)

“While I deeply regret this situation arose, I also emphatically stand behind all of you, and I want to commend you for continuing to go above and beyond to ensure we fly right.”

United: CEO Day Three

“The truly horrific event that occurred on this flight has elicited many responses from all of us: outrage, anger, disappointment. I share all of those sentiments, and one above all: my deepest apologies for what happened. Like you, I continue to be disturbed by what happened on this flight and I deeply apologize to the customer forcibly removed and to all customers aboard. No one should ever be mistreated this way.”

Remember the Story

• Key messages fit into a narrative• Who’s the hero? What is his or her goal? What is the

tension – obstacles, drama? How does your organization fit in?

• You don’t have to tell the whole story. But you have to know it.

Starbucks

Tips for Crisis Interviews

• Prepare answers for the most common questions and the most difficult questions

• Stay calm• Never say “No comment”• Don’t guess or speculate• Internalize regulatory or public affairs phrases• Don’t volunteer information• Don’t ask, “Does that answer your question?”

THE CAMERA IS ALWAYS ON

THE MIC IS ALWAYS HOT

THE REPORTER IS STILL ON THE LINE

How to GetC-Suite Buy-In

• Find a Champion

• Demonstrate the Cost

• Start Small

• Simulations

How to GetC-Suite Buy-In

Practice, Practice Practice

• Tabletop exercise 2-3 times year• Full crisis simulation once a year• Consider outside crisis experts to surprise the team• Include PA/RA

Let’s Discuss…

About Ragan Consulting Group

Mark Ragan and Jim Ylisela created Ragan Consulting Group to help corporate communicators of all skill-level, across every industry, improve their communications strategies.

RCG offers half-day or full-day workshops on:

• Writing and Editing

• Video Storytelling

• Brand Journalism

• Crisis Communications

• Internal Communications

• Infographics

• Media Training

• Speechwriting

• Communications Measurement

Whether you have a team of three—or 30, RCG will come to your headquarters to train your staff all at once. No budgeting for employee’s airfare, hotels or meal expenses. Just one flat fee.

If you’d like to bring Nick, Mark, Jim or another RCG expert to your organization, email Rebecca Shaffer at Rebecca.shaffer@raganconsulting.com.

THANK YOU!

Nick Lanyinicklanyi@gmail.com